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Bay Street Likely To Open Lower

Canadian shares are likely to open slightly lower amid cautious moves by investors on Tuesday as investors look ahead to U.S. Federal Reserve's monetary policy announcement on Wednesday.

Lower commodity prices and lingering worries about the spread of coronavirus infections across the world are likely to weigh on sentiment. Activity may well remain stock specific with quarterly earnings reports and other corporate news providing some direction.

On Monday, the market ended on a strong note, riding on gains in materials shares after gold and silver prices shot up to record highs. The benchmark S&P/TSX Composite Index ended up 164.27 points or 1.03% at 16,161.33, slightly off the day's high of 16,165.84.

In company news, West Fraser Timber Co. Ltd. (WFT.TO) reported a net income of $48 million or 70 cents per share for the quarter ended June 30, compared with a loss of $58 million or 92 cents per share in the year-ago quarter.

George Weston Ltd. (WN.TO) said it posted a loss of $255 million or $1.66 per share in the second quarter of this year, compared with a profit of $184 million or $1.19 per share in the second quarter of 2019.

Asian stocks ended mixed on Tuesday as the mood remained cautious despite a flurry of positive news, ranging from hopes about additional fiscal stimulus in the U.S. to the launch of late-stage trials of experimental Covid-19 vaccines.

Escalating U.S. - China tensions and the surge in coronavirus infections in several countries weighed on sentiment.

European stocks are drifting lower after displaying strength early on in the session. Markets are looking ahead to the Federal Reserve's monetary policy announcement, due on Wednesday.

In commodities, West Texas Intermediate Crude oil futures for September are down $0.19 or 0.44% at $41.41 a barrel.

Gold futures for August are lower by $3.30 or 0.17% at $1,927.70 an ounce.

Silver futures for September are declining $0.651 or 2.65% at $23.850 an ounce, while Copper futures for September are down $0.0040 or 0.14% at $2.8925 per pound.

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